look news india
Senior Citizen Fixed Deposit: If you are looking for safe and high return investments after retirement, then there is good news for you! Many banks have increased the interest rates on fixed deposits (FD) for senior citizens. Now, attractive interest rates up to 8.1% are available on 5 year FD. This means that your investment will not only be safe, but you will also get good returns on it.
Which bank gives highest interest?
According to data from PaisaBazaar.com, Suryoday Small Finance Bank is offering 8.1% interest on 5 year FD to senior citizens. Jana Small Finance Bank is giving a return of 8.0%. Apart from this, Utkarsh Small Finance Bank is offering 7.7% interest.
, Darshsuryoday Small Finance Bank – 8.1%
, Jana Small Finance Bank – 8.0%
, Utkarsh Small Finance Bank – 7.7%
What to consider before investing?
The amount invested in small finance banks is protected under DICGC up to Rs 5 lakh. That is, in case of any unexpected event, your FD amount and interest on it will be protected up to Rs 5 lakh. However, experts recommend that senior citizens should not invest a large portion of their total savings in such banks. For safety, it is better to limit the investment amount to this insurance limit (5 lakh).
TDS and tax information
If a senior citizen gets more than Rs 1 lakh interest annually from a bank FD, the bank deducts TDS. But if your total income is less than the tax limit, you can avoid TDS by submitting Form 15H. Under the new tax regime for the financial year 2025-26, no tax has to be paid on annual income up to Rs 12 lakh. In such a situation, those whose income is less than this limit can get TDS refund.
Why is FD the best option?
FD is a safe and reliable investment option for senior citizens. Especially small finance banks are offering high interest rates, which can become a source of regular income after retirement. If you are also planning such investment, then check the credibility of the bank, DICGC coverage and tax rules.